5 minute trendline scalping Strategy For MT4

5 minute trendline scalping Strategy For MT4

Table Of Contents:

  1. 5 minute trendline scalping Strategy For MT4
  2. The 5 minute trendline scalping Strategy For MT4 – Long positions
  3. The 5 minute trendline scalping Strategy For MT4 – Short positions
  4. Is the 5 minute trendline scalping Strategy For MT4 profitable?


Please note: This strategy was publicly published in the trading community and is free to use. We do NOT make an attempt to decide if this strategy is profitable or not, because we know that the major factors regarding trading results are the skills/experience of the trader who executes the strategy. Therefore, we are mainly explaining the components and rules of the strategy. If applicable, we are highlighting advantages, disadvantages and possible improvements of the strategy.


There are many ways to trade the forex markets. Many traders prefer to make use of technical indicators such as moving averages. Using moving average indicators allows traders to trade with the trend. Some might also prefer to use moving averages too place countertrend trades as well. Besides the moving average based trading systems, there is also the range trading strategy as well.

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In the range trading strategy, the focus is mostly given on price making a breakout. Besides these two main methods of trading, another popular way of trading the forex markets is by using trendlines. A trendline is basically a sloping line that is plotted against the low of the price or against the high of the price. When you plot a trendline that connects two or more lows or two or more highs of the price, the end result is a line that is sloping in most of the cases at a 45 degree angle.

When price action breaks this trend line, a new trend emerges. However, this is subjective. Depending on the charts timeframe that you are using, the break out from the trendline can result in either a new trend coming out or price merely making a retracement to its original trend. Regardless of what price action is doing, the break of the trendline can result in profitable trading strategies. The five minute trendline scalping strategy basically capitalizes on this trading concept. In order to be successful to trade with the 5 minute trendline scalping Strategy For MT4, you need to have good understanding of trendlines and also understand how price action works.

In the five minute trendline scalping strategy, there are only for indicators that are used. Therefore, this is a purely price action based trading system with the assistance of some of the indicators that are used. All the indicators in the five minute trendline scalping strategy are custom indicators. However, some traders might recognize the names of these indicators. For example, the indicator which stands out is the zigzag indicator in this trading system. This indicator is built based on the Gann zig zag indicator.

You might have noticed that we have mentioned the use of trendlines couple of times in this article so far. Some of you might be scared as drawing trendlines requires a lot of practice and familiarity with the markets. However, you have nothing to fear. As the five minute trendline scalping strategy also comes with an automatic trend line drawing indicator. However, this indicator cannot be relied upon 100% of the time. Traders who have some experience with price action trading can replace this indicator by manually plotting the trendlines themselves. The main aspect here is to focus on the zigzag indicator. Because this indicator plots the swing high and swing low in the markets, it can be easy for the traders to connect the highs and the lows and therefore be able to draw the trend lines automatically.

Let's now take a look at how you can trade long and short positions using the 5-minute trendline scalping strategy for MT4.



The 5 minute trendline scalping Strategy For MT4 – Long positions




In order to take a long position using the five minute trendline scalping strategy, you should start by observing the price action and the zigzag lines. For the long position, we are looking for a falling trendline to be broken. To plot a falling trend line, identify the highs that are formed by the zigzag indicator. After you identify a minimum of two highs, you can then use the trendline indicator from the MT4 trading terminal and connect these points.

Then, all you need to do is to wait for this falling trendline to be broken to the upside. When price breaks the trend line, wait for that particular candlestick to close completely. Ideally this candlestick should be bullish.

You can now take a long position at the opening candlestick. Set your stop loss to the low of the previous candlestick which closed outside of the trendline. You should now calculate the fixed risk to reward ratio and set your take profit level accordingly. We recommend that you use 50% of your position based on the fixed risk to reward ratio. For the remainder of the trade, set your second stop loss to the first high that formed when you were connecting the trendlines.

Be sure to move your stop loss to break even after the first take profit level is reached.



The 5 minute trendline scalping Strategy For MT4 – Short positions




In order to take a short position using the five minute trendline scalping strategy, you should start by observing the price action and the zigzag lines. For the short position, we are looking for a rising trendline to be broken. To plot a rising trend line, identify the lows that are formed by the zigzag indicator. After you identify a minimum of two lows, you can then use the trendline indicator from the MT4 trading terminal and connect these points.

Then, all you need to do is to wait for this rising trendline to be broken to the downside. When price breaks the trend line, wait for that particular candlestick to close completely. Ideally this candlestick should be bearish.

You can now take a short position at the opening candlestick. Set your stop loss to the high of the previous candlestick which closed outside of the trendline. You should now calculate the fixed risk to reward ratio and set your take profit level accordingly. We recommend that you use 50% of your position based on the fixed risk to reward ratio. For the remainder of the trade, set your second stop loss to the first low that formed when you were connecting the trendlines.

Be sure to move your stop loss to break even after the first take profit level is reached.



Is the 5 minute trendline scalping Strategy For MT4 profitable?


This trading system can be recommended for traders at all levels. You might need to have a bit of practice to draw the trend lines. However, they should not be too difficult. The trading rules are quite straightforward. The risk to reward ratio that comes with this trading strategy also allows you to make consistent profits.

Download the complete system description and the files here:

FREE 5 minute trendline scalping Strategy

Download the FREE 5 minute trendline scalping Strategy for MT4.

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